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2023 (9) TMI 146 - AT - Income TaxLevy of penalty u/s. 271B - default in furnishing of Tax Audit Report - As submitted tax Audit Report is physically filed before the AO during the course of assessment proceedings - As submitted that once the assessment has been completed and the assessee had paid due taxes and immunity has been granted u/s 271AA(2) then penalty u/s 271B should not be imposed - HELD THAT:- Undoubtedly, in the order passed by the Assessing Officer, there is no reference of the provision u/s 271B of the Act and penalty proceedings were initiated without recording the satisfaction by issuing show cause notice. AO, at the time of passing the assessment order, was in possession of the Audit Report which was duly mentioned by him. In section 271B of the Act, the only requirement is to get the accounts of assessee audited or furnish the report of audit as required under section 44AB of the Act. There is no requirement either to file or supply at the time of filing of return of income. The only requirement is to get accounts audited. In the present case, the assessee had filed the proof of furnishing the audit report before Assessing Officer, which had not been disputed by the Assessing Officer in his order. Thus the order of imposing the penalty by CIT(A)’s order are without any basis as assessee had satisfactorily proved audit of accounts and report thereof. The above said is also supported by the reasoning given by the Hon'ble Supreme Court in the case of M/s. US Technologies International Pvt. Ltd.[2023 (4) TMI 418 - SUPREME COURT] - Appeal of assessee allowed.
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